Depository and Mutual Funds

Depository participants are the link between the depositories and

• Stock exchange

• Investors

•   Government

• Custodians

What is ISIN?

• International System Investment Number

• Indian System Identification Number

•      International Securities Investment number

• International Securities Identification Number

Statement 1: Depository Facilitates transfer of securities between accounts on the instruction of the account holder.

Statement 2: Depository holds funds in account.

• Both statement are true.

• Both statement are false.

• Statement 1 is false but statement 2 is true.

• Statement 1 is true but statement 2 is false.

__________ is basically an organization, which helps register and safeguard the securities of its clients.

• Depository

• Depository Participants

• Custodians

• Stock exchange

Dematerialized shares have distinctive numbers.

• True

• False

________ funds invest in Central and State Government securities.

• Sectoral fund

• Liquid fund

• Gilt fund

• Balanced fund

   “Mutual Funds regularly provide investors with information on the value of their investments.” Which of the following benefits is reflected in the given sentence?

• Choice

• Professional fund management

• Regulation

• Transparency

_________ % the unit holders with the prior approval of SEBI can terminate the AMC of the fund.

• 75%

• 51%

• 65%

• 50%

These funds invest primarily in equity shares of companies in a particular business sector or industry.

• Growth fund

• Diversified fund

• Sector fund

• Index fund

"Companies default on principal and interest repayment" - Choose the correct risk that is implied in the statement.

• Interest rate risk

• Market risk

• Credit risk

• Non-market risk